Buying your first home is a big achievement and is a usually an accumulation of a years of hard work. It’s a symbol of stability and a comforting idea of a place to call your own. As with any other investment, buying a new home involves a lot of planning, research, scheduling and a time commitment so that you get the best value for your money. We have put together a handy guide to help give you a head start.
Tips for first time home Buyers.
1. Understand your finances: Before you begin to look for a home, you would need to understand your financial situation better so that you know exactly how much you can spend. This would then influence the size of the home you can buy and the neighborhood you should be looking at. There are several calculators available online that you can use to figure out how much mortgage you can pay towards your new home.
2. Get preapproval on your mortgage: There are a lot of people in Ontario who will be looking at homes in this busy season. To show that you are a serious buyer, you can get a preapproval letter on your mortgage so that you are prequalified for a certain amount. This will help you book your home sooner, over other buyers in the market.
3. Use your judgment while choosing a home: There are going to be a lot of beautiful homes on the market. First time home buyers are advised not to get swayed by the variety on offer. Remember to only look for homes that you can afford according to your preapproval letter. Going over this limit will only mean more heartache for you in the long run when you won’t be able to make payments. Our mortgage brokers in Collingwood will help you make wise choices Such as looking at the neighbourhood and accessibility to facilities nearby and get a home that you would be happy to spend a good part of your life in.
4. Set aside a sizeable down payment: Today, lenders are willing to offer mortgage on homes for less down payment than 20% of the home’s value. Despite this, it is always good to aim for 20% if not more of the home’s value as your down payment. Paying more upfront means that you will be reducing your mortgage payments, saving you more money in the long run.
5. Insure your new home: Getting an insurance policy on your new home is ideal if you want to be covered in case of natural disasters or any property damage. Look for a homeowner’s insurance policy that will keep you well protected from any possible future expenses, so that you can instead claim it through your insurance company. Our mortgage brokers in Owen Sound will be happy to help guide you to find the best homeowner’s policy available.
6. Look at furniture options: Your house hunt doesn’t stop with just picking out the home you would like to buy. You need to furnish your home, too! Make your home livable by finding practical furniture that does not take away a lot of your available cash to put on a down payment, and makes your house a home.
First Time Home Buyer Ontario Rules
Finally, once you’ve found the home you are happy with, stop looking! It is time for you to make your home the place you want to come back to every day, and fill it with happy memories. So start planning and come to us for any help you need!
Contact our mortgage experts today